Understanding Darknet Market Sites
The darknet is a hidden part of the internet that is not indexed by standard search engines. It is accessed using special software, most commonly Tor, which allows users to browse anonymously. Within this space, darknet market sites have emerged as platforms for buying and selling goods and services that often evade legal regulations.
Or consider the case of Silk Road 2.0, launched on November 6, just over one month after the original Silk Road was shut down. Silk Road 2.0, run by former admins of the original Silk Road, was supposed to be a fresh start. Its fall from grace happened within months—in February of this year the site claimed to have been hacked by one its vendors, who made off with $2.7 million in users’ Bitcoins. While the site’s administrators have promised to repay everyone who lost funds, many claim they have yet to be repaid. DarkOwl has assigned assets to monitoring and collecting data from the new AlphaBay Marketplace, despite their increased crawler detection measures and ongoing server instability.
- We then focus on counterfeit product types and product origins and compare our measures with estimates from audits of goods seized by law enforcement at borders.
- Screen shot from Dread dark web forum advising users of ViceCity exit scam.
- One explanation is that dissatisfied customers are substantially less likely to give feedback.
- The administrator also weighed in on alleged AlphaBay founder Alexandre Cazes, speculating that his lavish lifestyle at a Thai resort prior to his arrest had likely made him a target for law enforcement.
- Dark Net Markets are online cyber criminal platforms used for advertising, buying and selling illegal goods including a significant number of cybersecurity-related tools.
- PGP verified list of Onion Services (formerly tor hidden services) on the darknet.
What Are Darknet Market Sites?
Most commonly, the darknet marketplaces use a form of cryptocurrency to facilitate payments. So the anonymity of these marketplaces is matched with the alleged anonymity of cryptocurrencies. When AlphaBay became inaccessible as a result, thousands of its buyers and vendors flocked to the then law enforcement-ran Hansa market to continue their operations. Dutch police, operating servers across the Netherlands, Lithuania, and Germany, capitalized on the eight-fold surge of users visiting the market in the weeks following. The authorities used the time to gather information on high value targets and identified delivery addresses for sizable orders, passing along 10,000 international addresses of buyers to Europol. The Nightmare Market shutdown is a perfect microcosm of the issue with shutting down individual darknet markets.
Knowing which counterfeits are offered on darknet markets could help companies to make those products more difficult to counterfeit. For example, companies could change the used materials or manufacturing process to increase the efforts of imitating the product. Traceability of genuine products within a supply chain would also fall within that category, as it increases the efforts needed to counterfeit them, which could be technologically facilitated (Gayialis et al., 2022). Alternatively, the offenders’ rationalisation for committing a crime could be challenged by removing possible excuses for their actions. Removing excuses includes approaches such as setting up rules or posting instructions to reduce ambiguity in situations that can be exploited.
A large portion of deepweb links are sites hidden behind security firewalls or authentication forms, such as banking sites or any of the billions of web pages that are password protected. Unlike regular deep web sites such as your email account, the dark web is inaccessible unless you have special tools or software like the Tor browser. Some even say that the real dark web requires an invitation to participate. Facebook’s onion version lets people access Facebook in countries where access to the social network is otherwise restricted.
Darknet market sites are online marketplaces located on the dark web, primarily facilitating the trade of illegal items, including but not limited to:
We should note though that some of the highest-earning markets shown above only serve specific countries or regions. For instance, Hydra Marketplace, by far the most popular market on the graph, caters only to customers in Russia. Below, we have another version of this chart showing only markets with a global customer base. Some of the markets shown in the second graph are more popular in some countries than others, but overall, the data shown below will be more relevant to investigators based in the U.S. and Western Europe.
- Drugs — Various types and quantities
- Stolen data — Credit card numbers, personal information
- Counterfeit goods — Fake documents, currency, and branded products
- Weapons — Firearms and other illicit weaponry
- Malware — Software designed to exploit, harm, or extort
It is not a surprise to see ‘credit cards’ being sold in the darknet markets as they are further used to commit fraud and are also used by cybercriminals to finance their requirements and make profit. There are multiple ways in which credit cards are stolen – some of which are phishing scams, ATM skimmers and also by people in the industry who have access to customer credit card information. The cybercriminals / fraudsters are well aware of this challenge and try to perform their fraud activities by transacting small number of transactions on each card to avoid being detected by anti-fraud systems. The below snap shot was taken from a credit card sales ad at a darknet market where a seller also provides advice on making less amount transactions per card to avoid getting detected. Darknet markets are online marketplaces where vendors can sell illegal goods and services anonymously.
As of the end of 2019, there are at least 49 active darknet markets, so both users and vendors are spoilt for choice when seeking a new one. Not only that, but it’s easy for them to coordinate with one another to find new markets on forums such as Dread, a Reddit-like discussion site devoted to darknet markets. In addition to dark web markets, hacker forums are one of the dark web platforms where sales are made. The recent Ukraine-Russia war was reflected in the cyber world, and nationalist Russian threat actors came together in some forums.
Some holding prices are very high to prevent anyone from buying the product. The advantage of a holding price is that vendors can keep showing customers what was sold and what might be coming back in stock. However, when estimating price or sale volumes on markets, holding prices with very high values can distort the actual results. Therefore, we used a heuristic proposed and used by others (Soska & Christin, 2015; Wegberg et al., 2018) to replace high holding prices (≥ 10,000 USD) with the original price (if available) or to remove it.
How Do Darknet Market Sites Operate?
Transactions on darknet market sites typically use cryptocurrencies such as Bitcoin for increased anonymity. These sites often have a similar structure to e-commerce websites, allowing users to browse product listings, read reviews, and rate sellers.
Products And Services
Popular Darknet Market Sites
Some of the notorious platforms that have existed over the years include:
- Silk Road — One of the first, infamous now for its closure by law enforcement
- AlphaBay — Dominated the marketplace before being shut down in 2017
- Hansa Market — Another major hub closed under similar circumstances
- Ghost Market — Current operator for various illegal commodities
Risks Involved with Darknet Market Sites
Engaging with darknet market sites carries substantial risks, including:
- Legal consequences — Potential arrest and prosecution
- Fraud — Risk of scams from sellers
- Malware exposure — Threat of downloading harmful software
- Personal safety — Risk of violence or being targeted
FAQs about Darknet Market Sites
1. Are all products on darknet market sites illegal?
Most products listed are illicit, but some sites may offer items that are legal in certain jurisdictions.
2. How do users ensure anonymity on darknet market sites?
Users typically employ VPNs, Tor browsers, and cryptocurrencies to maintain privacy during transactions.
3. What should I do if I’m scammed on a darknet market site?
Due to the nature of these transactions, there is little recourse for scams; it is advisable to conduct thorough research before engaging in any transactions.
4. Can authorities track darknet market sites?
Yes, law enforcement agencies have developed methods to infiltrate and monitor some darknet market sites, leading to several high-profile closures.
Conclusion
Darknet market sites present a complex intersection of technology, commerce, and legality. Navigating this hidden web requires awareness of the significant risks involved, as well as a clear understanding of the implications of engaging in such markets. As with any illicit activity, seeking to understand the workings and dangers is essential for anyone considering participation.
